02.11.2022

Third quarter uptick for JLG

JLG and parent Oshkosh have reported their third quarter results.

Year to date

JLG’s total revenues for the nine months to the end of September were just shy of $2.9 billion, up 18 percent on the same period in 2021. The backlog/order book at the end of September was $3.89 billion, up 41 percent on the same point last year.

The year to date revenues were made up as follows:
Aerial work platform sales grew by 18 percent to $1.4 billion.
Telehandler shipments increased 32 percent to $855.5 million.
Other revenues - mostly parts, service and used equipment - declined by 4.5 percent to $634.3 million.
Operating profits for the period were 15 percent lower at $190 million.

Third Quarter

Total sales revenues in the third quarter were $1.04 billion, up 23 percent on the year. The revenues were made up as follows:
Aerial work platform sales improved 34 percent to $517.1 million.
Telehandler revenues increased 33 percent to $316 million.
Other revenues -parts, service and used equipment - declined eight percent to $204.8 million.
Operating profits for the period more than tripled to $113.2 million.

Oshkosh group

Oshkosh reported nine moth revenues of $6.08 billion, down around 1.5 percent on the same period last year. However pre-tax profits plunged 64 percent to $150.8 million.

Oshkosh chief executive John Pfeifer said: “We are pleased with the strong sequential quarterly earnings growth Oshkosh team members delivered, which demonstrates that our pricing actions to combat inflation are working. Supply chain disruptions remain our most significant challenge and continue to limit our production rates and contribute to manufacturing inefficiencies. Supply chain factors were the primary driver which led to a revenue shortfall of approximately $130 million compared to our expectations for the quarter. Despite the revenue shortfall, our adjusted operating income of $114 million, led by strong price realisation, was in line with our expectations.”

“In particular, our Access Equipment team delivered 23 percent year over year revenue growth and a more than 700 basis point operating margin improvement, culminating in a 10.9 percent operating income margin, or an 11.3 percent adjusted operating margin, for the quarter. We continue to improve supply chain resiliency through a combination of dual and alternate sourcing actions as well as technical redesign of some components, which we expect will help us strengthen our performance.”

Vertikal Comment

This is a strong result from JLG which appears to be outpacing those western rivals that have reported so far, in terms of revenues and a lesser extent profitability. As with Genie it is hard to say at this point what impact the Chinese manufacturers might be having on the long term position and profitability of JLG.

JLG does have a strong position in terms of brand awareness, new products, parts and service sales potential and a solid product line up. However, competitors are introducing new products at a mind blowing pace and tend to be a little less ‘corporate’ to deal with. Having said that the company has already sold most of next year’s production and has several interesting new products coming through.

It will be interesting to see how the next 12 to 15 months pans out. In summary a solid third quarter for the market leader.